Erection All Risk Insurance

Installation of machinery or equipment always entails a risk of loss or dam-age. Such eventualities can put a break in implementation, cause financial burden and leave you feeling you have no control.

The Erection All Risk (EAR) insurance covers loss or damage to projects that involves erection/installation of plant, machinery, and equipment ranging from erection of a single machine to a large power plant. It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment or machinery. It also includes cover for damage to property of third parties and bodily damage to third parties.

What is Covered?

EAR cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal employer, or the period chosen, whichever is earlier. The following are the risk against which you are insured:

  • Fire, Explosion, Lightning, Aircraft Damage
  • Flood, storm, cyclone, landslide & allied perils
  • Riot, strike, malicious act
  • Faults in erection of building
  • Human errors, act of negligence
  • Electrical & Mechanical Breakdown
  • Short Circuiting, arcing, excess voltage
  • Collapse, damage due to foreign objects, impact damages
  • Any other sudden, unforeseen, accidental damages not explicitly exclud-ed.

What is not covered?

  • War, Invasion, Act of foreign enemy, War like operations or hostilities (whether or not the war be declared), Civil War, rebellion, revolution, in-surrection, mutiny, Civil commotion, usurped power military, martial law, conspiracy, confiscation etc
  • Loss or damage due to faulty design, defective material of casting and/or bad workmanship
  • Nuclear reaction, Nuclear radiation or Radioactive contamination
  • Loss or Damage due to willful act or willful negligence of the Insured or of his responsible representative;
  • Cessation of work whether total or partial
  • Inventory losses
  • Manufacturing / designing defects
  • Consequential loss
  • Loss due to normal wear & tear, gradual deterioration.

Add On Covers

  • Cross Liability
  • Damage to Owner Surrounding property
  • Cost of Clearance & Removal of Debris
  • Third party liability
  • Escalation costs up to 50%
  • Air freight & express freight
  • Extended maintenance
  • Additional custom duty
  • Holiday & Overtime Charges